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Developing clean distributed power for Indonesia

ADB Inclusive Business Roundtable Jakarta 10-16-12
CONFIDENTIAL – NOT FOR PUBLIC DISTRIBUTION

RiverGen Overview
Company Mission, Vision & Goals
Become Indonesia’s leading independent power producer of clean
energy in the mini- & micro-hydro sector.

Mission

Vision

Contribute to the growth of the Indonesian economy while improving the country’s overall environmental & health quality standards.

Goals

1. Acquire & develop mini-hydro sites with generating capacities of up to 10 megawatts (MW).

2. Utilize project financing to invest a maximum of 30% equity in each
site depending on lender requirements. 3. Introduce industry leading best practices in all phases of site development from feasibility assessment to watershed monitoring.
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RiverGen Overview
Company Objectives
RiverGen currently is seeking to raise $40MM in equity to establish a company that will build 10 – 15 mini-hydro sites with individual generating capacities between 6MW – 10MW over the next 5 years.

1. Start-up

2. Scale-Up

3. Completion

Equity Debt Primary Activities

• • • •

$10 Million $25 Million Complete start-up & internal procedures Demonstrate ability to develop initial sites

• • • •

$25 Million $60 Million

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$40 Million $90 Million Complete development of all sites Investigate exit potential for investors
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Demonstrate ability to acquire new sites Operate & manage multiple sites

RiverGen Overview
Company Management & Board
Iman Naluri – Operations Director; 25+ years experience developing and operating large-scale & micro-hydro sites in Indonesia 2. Darren Miao – Managing Director; 10+ years in private equity & social enterprise sector

RiverGen Management

1.

3.

Riarno Haryowibowo – Finance & Legal Manager; 5+ years in
Indonesia infrastructure private equity & entrepreneur

RiverGen Board

1. 2.

Board Chair – Aldi Haryopratomo; CEO of PT Ruma (www.ruma.co.id) Board Member – Sutiono Teguh, CEO of Nusa Konstruksi Enjiniring (www.dutagraha.com)

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RiverGen Overview
Company Opportunity
RiverGen seeks to capitalize on a unique set of market conditions that creates

an attractive business opportunity executable over the next few years.

Favorable Regulations • National effort to promote renewable energy •

Large-scale Potential Significant untapped mini-hydro power potential •

Fragmented Market Lack of experienced multi-site mini-hydro developers •

Existing Local Expertise RiverGen merges 3 companies with 9 total active sites •

Available Funding Multiple funds seek investments in Indonesia mini-hydro
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RiverGen Overview
Company Foundation: PT Naluri Energi Utama & PT Inti Duta Energi
While RiverGen will be the legal entity owning the mini-hydro sites, the company’s core team & processes for developing new sites will be based on the existing experience & expertise of PT Naluri Energi Utama & PT Inti Duta Energi.
PT Naluri Energi Utama • • • Founded 10-12-2008 Board of Directors  Managing Director: Iman Naluri Board of Commissioners:  President: Sutiono Teguh  Riarno Haryowibowo Shareholders:  Sutiono Teguh (33.3%)  Iman Naluri (33.3%)  Riarno Haryowibowo (33.3%) PT Inti Duta Energi • • Founded 23-09-2011 by Nusa Konstruksi Enjiniring Board of Directors:  Djohan Halim  General Manager: JB Koesnarno Board of Commissioners:  Laurensius Teguh Khansanto Tan Shareholders:  PT Nusa Konstruksi Enjiniring (99.999%)  Individual Shareholder (0.001%)
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• •

RiverGen Overview
Company Process Overview
1. Site Pipeline
Key Objective
• Identify potential sites in most efficient & costeffective manner. • Obtain principal permits to begin site feasibility studies. • Obtain approval • from regulatory agencies to begin site construction activities. Sign contract with PLN to obtain project financing for site construction. • Complete site construction ontime & on-budget. • Ensure optimal performance & to detect potential issues early-on.

2. Site Permitting

3. Site Feasibility

4. Site PPA & Financial Close

5. Site Construction

6. Site Operations

Key Tools & Documents
1. GIS macro-criteria screening 2. Pre-Feasibility Site Excel report 3. Pre-Feasibility On-site SOP 1. Standardized Project Proposal 2. Licensing & Permitting SOP 1. Standardized Feasibility, UKLUPL & Design 2. Subcontracting & Bidding SOP 3. Community Engagement SOP 1. PPA & Financial Close SOP 1. OHS & CHS SOPs 2. Subcontracting & Bidding SOP 3. Project Management SOP 1. OHS & CHS SOPs 2. Project Management SOP 3. Community Engagement SOP

Key Decisions
• Board/Investment Committee approval of PreFeasibility Report • Management approval of site license expenses • Board/Investment Committee approval of Site Design & Budget. • Board/Investment Committee approval of Loan Terms. • Quarterly Review of Progress Reports with Board/Investment Committee • Quarterly Review of Site Monitoring Reports with Board/Investment Committee

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RiverGen Overview
Company Risk Mitigation Strategy
RiverGen’s strategy proactively addresses the major risks associated with

developing mini-hydro sites in Indonesia.
Major Risk
Risk Description • Delays in licensing & permitting will affect RiverGen’s ability to meet target completion date. Delays in construction – representing up to 70% of a site’s expense – can greatly decrease a site’s IRR. Reduction in water flow quantity & quality and/or high water flow variability will reduce site performance. Site revenues are directly correlated with the number of days a site is available for power generation. RiverGen Mitigant     Established pipeline of sites Experience working w/ government Grouping of site locations Partnering with leading microhydro developer & construction company       Secured developer as anchor investor Watershed mapping Geo-tagging and monitoring Deep stakeholder engagement Existing operational experience Knowledge transfer to local staff

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Site Licensing & Permitting

2.

Site Construction

3.

Durable Water Supply

4.

Site Operation

Proactive community engagement

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RiverGen Overview
Company Community Benefits
RiverGen plans to adhere to the Equator Principles & generate significant nonfinancial benefits to the environment & surrounding communities during operations
• • • Local employment & knowledge transfer during development & operations  80 – 90% of construction staff hired locally Construction & improvement of local infrastructure  Access roads, land grading, transmission lines, etc. Increased tax & tariff revenues to local governments  Up to 5% of gross revenues & 3 – 5 IDR / kWh in new tariffs

Economic Development

Rural Electrification

The company will be building new transmission lines from its sites to the national electrical grid which will facilitate rural electrification.  1 MW installed capacity can support up to 1,000 – 1,500 households  Work with local government & PLN office to connect households
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RiverGen Overview
Company Expected Environmental Benefits
In addition to economic & electrification opportunities for the Base of the Pyramid, RiverGen also expects to generate significant Pollution Reduction
• • • • Carbon dioxide ( CO2) - ~6,500 tonnes diverted annually per MW installed Sulfur oxides (SOx) - ~38 tonnes diverted annually per MW installed Nitrogen oxides (NOx) - ~15 tonnes diverted annually per MW installed Particulate Matter (PM10) - ~1.8 tonnes diverted annually per MW installed

Key Assumptions

Category

Assumption

Full Load Efficiency Factor
Gross Electricity Generated CO2 emission rate


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80%
7,008,000 kWh 925 g / kWh

SOx emission rate
NOx emission rate PM10 emission rate


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5,353 mg / kWh
2,203 mg / kWh 250 mg / kWh
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RiverGen Overview
Company Contact Information

www.rivergen.net
Darren Miao Managing Director darren@rivergen.net Mobile: +62 8778 1515 268 Skype: darren.miao Iman Naluri Operations Director iman@rivergen.net Mobile: +62 8132 1374 855 Skype: iman.naluri Riarno Haryowibowo Finance & Legal Manager riarno@rivergen.net Mobile: +62 856 1040 222 Skype: riarno.h

Sutiono Teguh Board Member sutionoteguh@gmail.com

Aldi Haryopratamo Board Chair aldi@rivergen.net Mobile: +62 8158 4617 290 Skype: haryopra

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